Investing.com– Anglo-Australian miner Rio Tinto Ltd (ASX:RIO) had approached U.S.-listed Arcadium Lithium PLC (NYSE:ALTM) over a potential takeover, both parties said in separate statements on Monday without presenting any financial details.
Reports last week said Rio was considering a takeover, which could value Arcadium between $4 billion and $6 billion, or even higher. Arcadium’s market capitalization was around $3 billion on Friday, while its shares surged about 36% after the report.
Rio confirmed that it was considering a takeover, but noted that the approach was “non-binding,” and that there was no certainty that any deal would be reached.
The potential deal comes as global metal producers rush to consolidate supplies of lithium, with demand for the metal set to surge from use in electric vehicles and a global push towards electrification in the coming decades.
The deal could potentially make Rio one of the world’s largest lithium producers.
Separate reports showed Australian Arcadium shareholder Blackwattle Investment Partners stating that any offer between $4 billion and $6 billion would undervalue Arcadium.